Invest in Iowa SSB 3116

Discussion in 'Legislative Forum' started by Fishbonker, Feb 7, 2020.

  1. Fishbonker

    Fishbonker Life Member

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    This is the bill that designates where any monies realized by an increase in the State's sales tax would be allocated. Of particular interest to us in this regard is the Outdoor Recreation Trust Fund. This bill proposes what percentage of the funds (your tax dollars) goes to each category.

    The percentages set forth in the bill can be broken down into a couple of categories; DNR managed accounts, IDALS managed accounts and IDOT managed accounts.

    The accounts managed by the DNR include the DNR general fund, watershed protection (with IDALS), REAP, local conservation partners and lake and stream restoration.

    The account managed by IDALS is soil and non-point source water.

    The account managed by the IDOT is water and land trails.

    The DNR natural resources general fund would get 18% of the money, the watershed protection (with IDALS) 15%, REAP 10%, local conservation partners 9% and lake and stream restoration 10%.

    The IDALS soil and non-point source water would get 34% of the funds.

    The IDOT water and land trails would get 4% of the funds.

    I don't know what that means in dollar amounts for each fund. I'm sure there are projections out there, I just haven't found them.

    Link to the bill: https://www.legis.iowa.gov/legislation/BillBook?ba=SSB 3116&ga=88

    It's a 46 page bill and the section that covers the Outdoor Recreation Trust Fund can be found on pages 17-36. If you follow the link to read the bill, also click on the lobbyist link. I've never seen so many lobbyists registered on a bill which probably means the percentages will change again. Also of note there is sure to be (if there isn't already) a House version which could have entirely different percentages.
     
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  3. Slick

    Slick Active Member

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    On the linked chart page 12 it shows that Iowa taxable sales were $40,127,136,504 so you could take that figure and multiply by what the rate is for the Outdoor rec fund. I can not find what that rate is. Do you know what that is? If it were like 1/3 of a percent you get 132,419,550 you could then break that out

    18=23,835,519
    15=19,862,933
    10= 13,241,955
    9= 11,917,760
    10= 13,241,955
    34= 45,022,647
    4= 5,296,782

    https://tax.iowa.gov/sites/default/files/2019-12/Fiscal Year 2019 Annual Report.pdf
     
  4. Fishbonker

    Fishbonker Life Member

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    Well, I'm not an accountant so I really don't have any idea what that chart is showing me but I'll take a very uneducated stab at it.

    If taxable sales are 40 billion I think you'd take that times 7% to get the amount of tax revenue. Then you'd need to figure out what 3/5ths of 1 cent of that total is because that is what the amendment says will go into the fund, then you'd take that amount and divide it between the different allocations.

    That's my stab, and it made my brain hurt.
     
  5. Slick

    Slick Active Member

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    Sales tax collected in 2019 was 2,396,948,840 * .006 = 14,381,693

    18=2,588,704
    15=2,157,253
    10=1,438,169
    9= 1,294,352
    10=1,438,169
    34=4,889,775
    4= 575,267

    Does the 3/5ths currently go into the fund or is this a proposal?
     
  6. Fishbonker

    Fishbonker Life Member

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    3/5ths was approved by the voters back in 2010 as an amendment to the Iowa Constitution, the legislature is thinking about raising the sales tax this year which would fund the fund. So this is still a proposal.

    The catch is I'm pretty sure the legislature is going to decrease the general fund allocation to the DNR by the amount the tax would bring in so it is a zero sum gain.
     
  7. DannyBoy

    DannyBoy Well-Known Member

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  8. Fishbonker

    Fishbonker Life Member

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    I was at a local legislato'rs listening post today, he estimated it would be 220 million divided between the different categories.
     
  9. Slick

    Slick Active Member

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    That makes more sense. If it is going to be a new tax you would have to multiply it by the total sales not by the total tax....... $40,127,136,504 * .006 = 240,762,819.00.
     
  10. tslc

    tslc PMA Member

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    Exactly

    "The catch is I'm pretty sure the legislature is going to decrease the general fund allocation to the DNR by the amount the tax would bring in so it is a zero sum gain."

    If you think these funds are going to be used in the way they are suppose to you are being fooled!
     
  11. Fishbonker

    Fishbonker Life Member

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    Brief update on this bill. The House has the same bill HSB 657, it has a subcommittee the Senate version does not. I believe this bill is funnel proof, first funnel is Thursday.

    I received this link last night: http://www.iowafiscal.org/breaking-trust-with-the-trust/ It explains the history and details the distribution formula of the Outdoor Trust Fund (IWILL) as understood by the voters at the time. It compares what we voted for to what we are getting.
     
  12. Rjack

    Rjack Well-Known Member

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    Well, that was a discouraging read.
     
  13. Fishbonker

    Fishbonker Life Member

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    Yeah, it was kinda like a kick to the jimmies.
     
  14. Fishbonker

    Fishbonker Life Member

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  15. Rjack

    Rjack Well-Known Member

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    Positive - like getting kicked in the jimmies once is WAY better than getting kicked in the jimmies 3 times.
     
  16. Fishbonker

    Fishbonker Life Member

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    Subcommittee meeting today.

    Lots of rumors about the bill and its future. Hard to tell what is going to happen. I've been to a republican Representative's town hall and a democrat Senator and Representative's town hall. All of them have issues with the bill. Maybe if neither side are 100% happy with it, then it might be about right.
     
  17. Sligh1

    Sligh1 Administrator Staff Member

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    U have a brief summary of why either side is against this? I realize everything has some pros and cons & curious on downside so folks can be lil more educated. Is it mainly the sales tax issue?
     
  18. Fishbonker

    Fishbonker Life Member

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    Rs are not happy with the way the Gov rolled it out and it's a tax increase. The Ds I listened to were against because the money that was going to go to mental health was not guaranteed and other things to do with MH.
     

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